UPDATE 1-Brazil's industrial output barely grows in February

Reuters Staff

3 Min Read

(Adds table, background)
RIO DE JANEIRO, April 4 (Reuters) - Industrial output in
Brazil barely grew in February, government data showed on
Tuesday, throwing cold water on hopes of a quicker recovery from
a two-year recession.
Industrial production rose 0.1 percent in February from
January, government statistics agency IBGE said,
short of expectations for an increase of 0.7 percent in a
Reuters poll of economists.
Production fell 0.8 percent from a year earlier, compared to
expectations of a 1.4 percent rise.
The disappointing performance of Brazilian manufacturers and
miners in February added to a recent batch of frustrating data
from retailers and service providers that had been expected to
show Brazil's economy finally emerging from its worst-ever
recession.
Economsts with MCM Consultores in a report said they were
preparing to cut their estimate for Brazil's growth in the first
quarter from the current 0.5 percent following the industrial
output data.
A 6.5 percent increase in capital goods production was the
silver lining in the data, though, in a sign of rising
investment.
"Brazil's industry is showing that the worst is over, but we
can't really say that the sector is already recovering. It is
stabilizing," IBGE economist André Macedo said.
The IBGE report contrasts with a purchasing managers' survey
showing the industrial sector picking up speed. The Purchasing
Managers' Index compiled by research firm Markit
showed in March the first increase in production and new orders
in 26 months.
(Percent change) m-m y-y
Capital goods 6.5 2.9
Intermediate goods 0.5 -2.5
Consumer goods 0.9 1.4
Durable consumer goods 7.1 19.8
Semi-durable and -1.6 -2.5
non-durable consumer goods
Industrial output 0.1 -0.8
(Reporting by Rodrigo Viga Gaier; Additional reporting by
Silvio Cascione; Editing by Meredith Mazzilli)